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Moratorium on Residential Evictions

By Phillip J. Neuman posted 04-20-2020 16:16

  

As expected, Governor Whitmer issued a new Executive Order (2020-54) that extended the moratorium on residential evictions in Michigan through Friday, May 15 at 11:59 p.m.  The order continues to prohibit a residential eviction for nonpayment of rent, and appears to prohibit all other types of eviction unless the tenant poses a substantial risk to another person or an imminent and severe risk to property.  Additionally, the new Executive Order confirms the opinion of the Attorney General that a 7 day demand for nonpayment of rent cannot include a demand for possession or other threat of eviction based on the nonpayment of rent.  Therefore, you cannot use the usual 7 day notice (DC100a) without making major changes to the language of the notice.

Additionally, the Michigan Supreme Court instituted a new order late last week that requires all new nonpayment of rent cases filed through July 25, 2020 to include a certification that the property is not a "covered dwelling" as defined in the CARES Act.  SCAO has approved a new form (DC504) for this purpose.

As you may recall, the CARES Act imposed a federal moratorium on evictions for nonpayment of rent through July 25 for certain properties.  A "covered dwelling" is defined in the Act as a dwelling occupied by a tenant on a "covered property."  "Covered properties" are properties having a federally backed mortgage loan, or a federally backed multifamily mortgage loan, or which participate in most federally assisted rental housing programs, including Section 8 housing.  Once the state moratorium is lifted and we are in a position to begin filing new nonpayment of rent cases, I will be asking you to confirm that the tenant is not living in a "covered dwelling."  If the tenant is living in a "covered dwelling," then we will have to wait until after July 25 to send out a demand for possession, and we will have to modify the form to give the tenant 30 days to pay or move.

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